Strata managing agent licensing and compliance in NSW
Strata managing agents in NSW must hold a licence under the Property and Stock Agents Act 2002 and comply with the Strata Schemes Management Act 2015 when managing owners corporations. The regulatory framework covers licensing, trust accounting, disclosure, and fiduciary duties. NSW Fair Trading enforces compliance. This guide sets out 10 core obligations.
Coverage
Individuals and corporations acting as strata managing agents for owners corporations in NSW. This includes licensed strata managing agents, assistant agents, and corporations holding a corporation licence. Building managers providing strata management services also require licensing.
Legal basis
Property and Stock Agents Act 2002 (NSW), Property and Stock Agents Regulation 2022 (NSW), Strata Schemes Management Act 2015 (NSW), Strata Schemes Management Regulation 2016 (NSW). NSW Fair Trading administers the licensing scheme.
The obligations
Hold a current strata managing agent licence
Obtain and maintain a strata managing agent licence (class 2) or corporation licence before acting as a managing agent for any owners corporation. Unlicensed strata management is an offence.
Enter a written management agreement
Execute a written strata management agency agreement with the owners corporation that complies with prescribed requirements, including term limits, fee disclosure, and termination provisions.
Disclose commissions and interests
Disclose in writing any commissions, training services, or other benefits the agent receives from third parties in connection with the strata scheme, before the benefit is received.
Maintain a trust account
Deposit all money received on behalf of an owners corporation into a trust account maintained in accordance with the Property and Stock Agents Act. Trust money must not be mixed with the agent's own funds.
Prepare and provide financial statements
Prepare financial statements and accounting records for the owners corporation and present them at each annual general meeting. Maintain records that allow the strata committee to audit the financial position.
Maintain the strata roll and records
Keep the strata roll up to date with owner and lot details. Maintain all records of the owners corporation including minutes, correspondence, insurance policies, and by-laws, and make them available for inspection.
Arrange and maintain insurance
Ensure the owners corporation holds the required insurance including building damage, workers compensation, and public liability. Review insurance annually and arrange renewal before expiry.
Complete continuing professional development
Complete the prescribed CPD hours before licence renewal. CPD must cover topics relevant to strata management including legislative updates, trust accounting, and dispute resolution.
Comply with the maximum appointment term
Management agreements must not exceed the maximum term prescribed by the Act. For initial appointments by the original owner, the term is capped. Reappointment requires a resolution of the owners corporation.
Provide access to records and handover on termination
On termination of the management agreement, deliver all records, documents, keys, funds, and property of the owners corporation to the successor agent or strata committee within 14 days.
What happens if you do not comply
Unlicensed strata management carries penalties of up to $22,000 for individuals and $44,000 for corporations. Trust account breaches carry penalties of up to $22,000 and potential criminal prosecution. NSW Fair Trading can suspend or cancel licences, issue compliance notices, and refer matters for disciplinary action by NCAT.
Reporting requirements
Annual trust account audit reports must be lodged with NSW Fair Trading. Financial statements must be presented at each annual general meeting of the owners corporation. CPD records must be maintained for licence renewal.
What firms should do today
- Verify your licence class covers strata management on the NSW Fair Trading register
- Use management agreement templates that comply with the 2015 Act requirements
- Implement trust accounting software that produces compliant reports
- Set calendar reminders for insurance renewals, AGMs, and licence renewal
- Maintain a disclosure register for commissions and third-party benefits
- Document all handover procedures for when management agreements terminate
Compliance with Quillio
Quillio helps strata managing agents track compliance deadlines, organise owners corporation records, and flag disclosure obligations across multiple strata schemes. See /resources/security or start a free trial.
This guide is general information about strata manager licensing in NSW — not legal advice. Requirements vary by licence class and scheme type. Obtain specialist strata law advice for your specific circumstances.
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